JAKARTA - US President Donald Trump suddenly cut off trade negotiations with Canada because of taxes targeting US technology companies.
Trump called the tax imposed by Canada a "discrete attack".
Therefore, the US said Trump would set a new tariff for Canadian goods next week.
The move plunged US-Canada relations back into chaos after a relatively calm period that included a friendly G7 meeting in mid-June where Trump and Canadian Prime Minister Mark Carney agreed to finalize a new economic agreement within 30 days.
It also comes hours after US Treasury Secretary Scott Bessent expressed an optimistic tone about trade, touting progress has been made with China in reviving mineral flows important for the US manufacturing sector and in other key tariff negotiations.
The launch of Trump's import levies, which has often been chaotic since he returned to office this year, has frequently rocked financial markets, and has begun to weigh on consumer spending, the US economic foundation.
Trump, in a post on his social media platform Truth, called Canadian taxes a "direct and blatant attack on our country".
He said Canada was a "very difficult country to TRADE with us."
"Based on this outrageous tax, we hereby stop all discussions about Trade with Canada, it will take effect immediately," Trump said.
"We will inform Canada of the rates they will pay to do business with the United States in the next seven days," Trump continued.
Speaking to reporters at the White House, Trump said negotiations with Canada would not continue.
"Until they correct their actions," he said.
Trump emphasized that the US holds great power over Canada.
Canada is the second largest US trading partner after Mexico, and the largest US export buyer. Last year, Canada bought US goods worth $349.4 billion and exported $412.7 billion to the US, according to data from the US Census Bureau.
Carney's office responded to Trump's announcement saying: "The Canadian government will continue to engage in these complicated negotiations with the United States in the best interest of Canadian workers and businesses."
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